Senate Pauses Consideration of Tax Reform Bills Amid Public Concerns

In a significant development, the Senate has halted deliberations on President Bola Tinubu's tax reform bills to address growing public concerns.

During Wednesday’s plenary session, Deputy Senate President Jibrin Barau, who presided over proceedings, announced the decision. He stated that the Senate had directed its Committee on Finance to continue public hearings on the legislation while working to resolve contentious issues.

To facilitate dialogue and consensus, the Senate has established a special committee to collaborate with the executive branch and engage stakeholders across the country.

Barau emphasized the need for unity and collaboration, saying:
“In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills. In collaboration with the executive arm of government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.”

He further noted the challenges facing the nation, including insecurity and economic concerns, and reiterated the Senate’s commitment to supporting the President’s efforts to address them while navigating global economic pressures.

The tax reform proposals, which aim to modernize Nigeria’s tax framework, include the Nigeria Revenue Service (Establishment) Bill, 2024, the Nigeria Revenue Board of Nigeria (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024. However, the bills have sparked debates, with opposition from the National Economic Council and Northern governors, who argue that the legislation may disadvantage their region.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified that the reforms are designed to benefit all regions, particularly the North. Despite this assurance, concerns persist, prompting the Senate’s latest decision.

The legislation had advanced to second reading in the Senate last week. Meanwhile, the House of Representatives experienced a heated session on Tuesday due to differing opinions on the same tax reform measures.

This pause in deliberations reflects the Senate's commitment to ensuring that all stakeholders are heard and that the tax reforms contribute to national development without exacerbating existing challenges.